C 3935.8 R948b 1990 c.3
OKLAHOMA
RURAL BUSINESS
DEVELOPMENT
STRATEGY
JANUARY, 1990
Revitalizing .
URALO
KLAHOMA
ON THE COVER
Clockwise from top:
Tahlequah, Oklahoma's beautiful Sequoyah Park.
Facade restoration of The Green Apple, a women's
clothing store, in downtown Anadarko, Oklahoma.
Serving pieces of the world's largest pecan pie at the
annual Pecan Pie Festival in Okmulgee, Oklahoma.
The idle Robin Hood Flour Mill in Ponca City, Oklahoma.
New public transportation system connecting downtown
Eufaula and Marina Cove on Lake Eufaula.
(Photos courtesy of the Oklahoma Main Street Program.)
Oklahoma Rural Business Development Strategy 1990
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ..;;;;;;;;~;~;;;;;;;;;;; ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;;;;;;;;;;;;;;;;:;.: .;.;:;:;;; ;;;;;;;;;;~; :;:;:;;;;;:;;;;;;;:; :;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:;:;:;:;:::::::::::::; ::::::::::::::::;::::::::;;;:;:::;;::;;;:::;:::;:;:;;;;;;; :;:;:;:;:;:;:;:;:;:::;:;:;:;:::;:::;:;::::;:;::: .:.: .
OKLAHOMA RURAL BUSINESS
DEVELOPMENT STRATEGY
January 1990
Principal Authors:
Mary Frantz, Oklahoma Department of Commerce
Harley Lingerfelt, Oklahoma Department of Commerce
Gerald Doeksen, Oklahoma Cooperative Extension Service
Mike Woods, Oklahoma Cooperative Extension Service
Supporting Grants:
National Governors' Association
w.K. Kellogg Foundation
National Cooperative Extension Service
The authors extend our sincere thanks to Mark Popovich
with the Council for State Policy and Planning Agencies
for his excellent guidance and support. We gratefully
acknowledge the Rural Business Development
Conference Planning Committee for their help in planning
the conference and reviewing this strategy. Their names
are listed in Appendix I.
Revitalizing
URALO KLAHOMA
Oklahoma Rural Business Development Strategy 1990
This publication was printed by the State Department of Vocational Technical Education,
Printing Department, and distributed by the Oklahoma Department of Commerce as
authorized by Donald D. Paulsen, Secretary of Commerce. Fifteen Hundred Copies
(1,500) were printed at a cost of $4,518.17. Copies have been deposited with the
Oklahoma Department of Libraries, State Publications Clearinghouse. 1/25/90 mkf
Oklahoma Rural Business Development Strategy 1990
..:.:.:.:.:.:.::::.:.:.:.:::::::::::::: . :::::::::::::::::.::::::::: :::::::::::::::::::::::::::::::~:: :::::::::::::::::::::::::::::::::::::::::::::::::::;:::::;:::;:;:;:;:;:;:::;:::::::::::::: .:.;.:.:.:.:.:.: :.: :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:::::::::::;:;:;:;:::::: :::::::::::::::::::::::;:;:;:;:;:;:::.::
CONTENTS
Executive Summary 1
Chapter I. U.S. Climate and the Oklahoma Viewpoint 4
Chapter II. Themes and Actions 11
Chapter III. What's Next 20
Appendix I 22
Oklahoma Rural Business Development Strategy 1990
:::::::::::::::::::::::::::::::::::::::::::: . ........................... ::::::::::::::::::::::::::::.:.:::: :.:.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:::.:.:.::::::::::::::::::::::::::::::::.:.: .
EXECUTIVE SUMMARY
This strategy is the work of many rural Oklahoma leaders --
those that attended regional focus groups and the Oklahoma Rural
Business Development Conference on November 2, 1989. Their
insightful comments and excellent recommendations form the base
of this report, and, if followed, will lead Oklahoma's rural
communities toward a brighter and more prosperous future.
The focus groups held this past summer pinpointed the three
issues on which the conference should direct its attention -- Local
Capacity Development, Financing for Business Start-Up and
Expansion, and Public Works and Highways Development. At the
conference, participants heard brief presentations on these three
issues, then discussed the issues in-depth and recommended
possible actions the state should follow to address the problems
rural communities and businesses face.
Four themes clearly appeared in the conference participants'
recommendations:
* the need for a variety of technical assistance and
leadership development programs to be presented
on-site in the rural communities;
* the need for the state to support public/private
financing partnerships which generate the
necessary financial support and assistance for
rural businesses, lenders and communities to
successfully develop in this ever-evolving
economy;
* the need for the state to facilitate and support local
and regional cooperation and sharing of resources;
and,
* the need for an efficient service delivery and
marketing system to provide and promote existing
state services to rural communities.
Themes
The strategy's recommended actions are highlighted below
under each issue. For a more in-depth review of these actions,
refer to Chapter II of this report.
Oklahoma Rural Business Development Strategy 1990
Action Plan
Creation of a rural
assistance center to
act as a clearinghouse
for the state's rural
development
programs
Executive Summary
A lot of good things are happening in rural Oklahoma today,
much of it because local communities had an idea and the
initiative to "get the ball rolling." It is clear that Oklahoma's rural
communities want to decide, on their own, the direction of their
future. But, they must know what services are available to help
guide them toward their goals.
To address this need, conference participants strongly
recommended more coordination and better marketing of public
and non-profit rural development programs. Therefore, the first
recommendation of this strategy is the creation of a rural
assistance center to act as a clearinghouse for the state's
public and non-profit rural development programs.
While the center's staff members will support the information
and referral program, they will also need to contract and
coordinate with the appropriate Oklahoma rural development
organizations to provide much of the research, planning,
development, and implementation services that are needed to
support the projects outlined below.
LOCAL CAPACITY
* creation of a statewide rural leadership development
program
* expansion of existing community economic
development planning efforts by the Oklahoma
Cooperative Extension Service
* continued funding for the Oklahoma Certified Cities
Program, a public-private leadership and community
development project
* partial funding of the nine regional economic
development organizations
FINANCING FOR BUSINESS
START-UP AND EXPANSION
* better coordination and provision of small business
assistance programs to Oklahoma's rural small
businesses
* better coordination and provision of technical
assistance programs to Oklahoma's rural lenders
* research and development of a series of
public/private financing partnership programs, and
identification of financial support for these programs
2 Oklahoma Rural Business Development Strategy 1990
Executive Summary
* review and development of possible changes to the
state's regulatory environment.
PUBLIC WORKS AND HIGHWAYS DEVELOPMENT
* expansion of the existing public works planning
assistance programs provided by the Oklahoma
Cooperative Extension Service
* expansion of the substate planning districts' public
works planning assistance programs
* review and development of public/private public works
assistance partnerships
* support of a joint OU-OSU research and extension
program to collect and provide better public works
research and data from state and local sources, and to
conduct in-depth studies on public works issues
affecting Oklahoma's communities
* identification and development of public/private
partnership programs and/or regulatory changes which
address public works financing gaps in Oklahoma's rural
markets
* research and identification of ways to increase
communities' ability to finance their local or regional
public works needs
* coordination of a statewide capital improvements
planning process
This strategy will soon be presented to the Governor, the
Oklahoma Legislature, Oklahoma Futures, and the Oklahoma
Congressional Delegation. Each of these has an important role to
play in the strategy's implementation. More important, though, is
the role of Oklahoma's rural communities and citizens in '
envisioning their future and striving toward it.
Over the next months the Oklahoma Department of
Commerce, the Oklahoma Cooperative Extension Service and the
Conference Planning Committee will work with the Governor and
the Oklahoma Legislature to generate adequate funding for the
rural assistance center and these needed projects. With proper
funding, the center should begin its work in July, 1990.
What's Next?
Oklahoma Rural Business Development Strategy 1990 3
"Finding long-term
solutions would
greatly help rural
Oklahomans
prepare
themselves for a
bright new future. "
"Note: Initially, this issue was
called Infrastructure
Development. The Conference
Planning Committee felt Public
Works and Highways
Development was a more
descriptive term, so the issue
was renamed.
CHAPTER I. U.S. CLIMATE
AND THE OKLAHOMA
VIEWPOINT
"Finding long-term solutions to three issues -- Local Capacity
Development, Financing for Start-Up and Expansion, and Public
Works and Highways* -- would greatly help rural Oklahomans
prepare themselves for a bright new future," said leaders from
many rural Oklahoma communities. With these leaders' help, the
Oklahoma Department of Commerce, the Oklahoma Cooperative
Extension Service, and the Conference Planning Committee
designed Oklahoma's first Rural Business Development
Conference to focus on these three issues -- those most
challenging and important to rural Oklahoma's future (for more
information on the conference background, see Appendix I).
For the sake of the conference and this strategy, "rural" has
been defined as those communities outside of the Metropolitan
Statistical Areas (MSAs); also included are those smaller
"suburban" communities within MSAs which lack an independent
economic base and sufficient local staffing to address these issues
on their own.
In order to better understand the national and state climate
revolving around these issues, issue papers prepared by
recognized experts helped set the state for the participant
discussions. Highlights of these papers follow under the "Climate"
section in each issue. This review has been included to give you,
the reader, some insight into the background of the conference,
and how the participants were prepared -- in addition to their own
background and experience -- to deal with the important issues at
hand. (Copies of the three issue papers are available on request
from the Oklahoma Department of Commerce).
The heart of the participants' recommendations are reviewed
under the "Oklahoma Viewpoint" section in each issue. The
conference participants recommended actions which the state and
in some cases the private sector, should undertake to most
effectively assist Oklahoma's rural areas to succeed in turning their
economies around. To accurately reflect the outcome of the
conference, only recommendations made by the conference
4 Oklahoma Rural Business Development Strategy 1990
Chapter I
participants are included in this section. Although some readers
may feel there are other approaches to these issues, we do not
attempt to address those here.
LOCAL CAPACITY DEVELOPMENT Climate ...: : :.:.:.:.:.:.:.:.:.;.:.: : .
Local Capacity Development, also known as "Decision-Making
Capacity" focuses on how well a local community uses the
resources that are available in the community to mold itself into the
community it wants to become.
The keys to any community's healthy growth and development
are that:
* they want to help themselves;
* they are provided individualized assistance to enable
them to help themselves; and,
* for the most part, they -- all members of the community
-- do it themselves.
Most communities need a conceptual model -- or starting point
-- in order to "get off the ground." Normally, someone from outside
the community -- an independent facilitator -- is needed by a
community to help them take their first steps in the decision making
process. With hard work, a long-term commitment to the model,
and a true understanding and acceptance that local economic
development is an ongoing, long-term effort, a community can
create for itself a future with great potential and high rewards.
While decision making capacity already exists in many
communities, it often needs nurturing and conscious support. The
local decision makers who can contribute this support possess at
least three separate qualities:
* They must understand and interpret changing external
circumstances that create local economic development
possibilities.
* They must understand the local economy and how it
might be altered.
* And finally, they must aggressively search for ideas to
translate into actions that positively influence the
evolving local economy.
Oklahoma Rural Business Development Strategy 1990 5
Chapter I
Oklahoma
:.~:i,~~e~in!:.
Conference participants felt effective leaders are currently
found in rural Oklahoma's public and private sectors, although their
quality and preparation is somewhat uneven. Through a mixture of
leadership identification and development programs and technical
assistance programs for current leaders, a more consistent, highly
effective group of leaders will be developed in every community in
the state.
The seriousness with which local Oklahoma communities are
developing strategies for growth varies greatly, sometimes
because of apathy among their leaders, but primarily because of
the lack of expertise and resources available in many communities.
This resource void inhibits development and implementation of
community plans. To address this gap, conference participants
called for more leadership development programs, technical
assistance programs for local leaders, state financing for rural
planning efforts, and regional cooperation and sharing of
resources.
Many conference participants mentioned that the existing
service delivery system was not as efficient and coordinated as it
needed to be. To solve this problem, the participants
recommended a better marketing program, a one-stop rural
assistance center that would act as a clearinghouse for all existing
and newly-developed rural development programs, consolidation
and refinement of existing programs, and more funding to provide
additional field personnel to deliver the rural services.
Participants stressed that some of Oklahoma's rural
communities suffer from low self esteem. Among the
recommendations to address this problem were the provision of
more role models/success stories, leadership development
programs, and technical assistance programs.
FINANCING FOR BUSINESS START-UP AND
EXPANSION
Climate Deregulation has altered the structure of rural capital markets,
and the impact on rural capital availability is unclear. However, in
Oklahoma research shows that there is a capital availability
problem, which increases in magnitude as the population of a
community decreases.
There is a range of public, private, and public/private
partnership options available to help solve the rural capital
6 Oklahoma Rural Business Development Strategy 1990
Chapter I
availability problem. None of these approaches will work alone. A
combination of all three must be in place in order to help a
community and its businesses gain access to needed capital.
Public initiatives are designed to increase capital availability by
providing capital directly to small businesses, either by working
through existing financial institutions to increase lending, by
providing technical assistance to businesses to improve their
capacity to receive financing, or by regulatory changes.
With direct state lending programs, the state acts as lender to
increase capital availability for rural businesses and stimulate rural
economic development. Through indirect lending programs, the
state works with other institutions to reduce the borrowers'
financing costs or to reduce the lenders' risk associated with small
business loans.
An important component of any state activity is providing
technical assistance for small businesses to enhance their capacity
to manage their enterprises and effectively compete for financing.
Private initiatives combine aspects of direct and indirect
lending, providing particular kinds of capital to eligible businesses,
e.g., seed or equity capital, while also working with financing
institutions to secure debt capital by, for example, arranging loan
guarantees. Other private initiatives have developed innovative
technical assistance programs to enhance rural capital access by
providing business and management assistance to entrepreneurs
and small business owners, e.g., Maine's Coastal Enterprises, Inc.
and Minnesota's Women's Economic Development Corporation.
Public/private partnerships work through existing private
institutions or create new institutions that can use state funds to
leverage private dollars for small business development, e.g.,
Michigan's Capital Access Program and Greater Minnesota
Corporation.
There are four important keys to designing capital programs for
rural areas:
* Providing a stable, long-term source of funding.
Private dollars can be leveraged to augment public
programs or the state can work through private
institutions.
* Targeting program funds to businesses facing the
most severe capital constraints (those businesses
unable to obtain credit through traditional avenues
An important
component of any
state activity is
providing
technical
assistance for
small business ...
Oklahoma Rural Business Development Strategy 1990 7
Oklahoma
Viewpoint
.:.:.:.:-:.:.:-:.:.:.:.:.:-:.:::.:.:;;.:
The use of public
dollars to leverage
private dollars
was strongly
encouraged by
conference
participants.
Chapter I
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and for which the capital represents an important
opportunity to develop or maintain a viable
enterprise).
* Addressing the apparent need for equity as well as
debt capital by working with or establishing
alternative financial institutions.
* Incorporating a technical assistance component
into any capital enhancement program so that the
business' success and its access to capital from
traditional institutions are increased.
A recurring concern among the conference participants was
the lack of understanding by some rural small businesses and rural
lenders regarding the environment in which they are working .
Technical assistance programs to help the entrepreneurs better
prepare themselves for operating a business were highly
recommended. Additionally, programs to help lenders understand
the diversifying economy and the new industries appearing across
Oklahoma's landscape were strongly suggested. Better marketing
of Oklahoma's existing state financing programs was also advised.
In some communities, conservative lending practices were
considered a problem. Again, recommendations for technical
assistance programs to help lenders succeed in the new, evolving
Oklahoma economy, and the need for more public/private financing
partnerships to help lower the risks rural lending institutions face
were stressed.
The lack of all types of capital (working, venture, long-term,
start-up) was mentioned by most conference participants. The use
of public dollars to leverage private dollars was strongly
encouraged whether it be through guaranteed loans, a matching
fund program, regional bond pools, a state-chartered rural
business development bank, or venture capital pools.
Some participants mentioned that there is not a shortage of
funds to lend in rural Oklahoma, but a shortage of qualified
borrowers and economic opportunity. To address this problem,
participants recommended increasing technical assistance to rural
borrowers so they can identify and pursue excellent business
opportunities in order to become good lending risks.
The limited lending capacity of small, rural banks was cited as a
problem affecting rural capital availability. Recommendations to
solve this problem ranged from a state-chartered rural business
development bank to regional loan pools and guaranteed loans . ........................................................................................................................................... .
8 Oklahoma Rural Business Development Strategy 1990
Chapter I
Most conference participants felt the use of current state funds
to fund businesses was too restrictive. They recommended
creating a state regulatory environment which encourages lending
to small businesses, in addition to creating tax incentives for
private investors who invest in rural businesses.
Excessive banking regulations, particularly on the federal level,
were cited by the participants for many of the problems facing rural
banks. Although the state can only affect the federal regulations
through its Congressional Delegation and the Governor's task
forces on the FDIC and FSLlC, there may be state banking
regulations that should be closely reviewed to see whether they
can be reformed.
PUBLIC WORKS AND HIGHWAYS DEVELOPMENT
Although the tie between public works and highways and
economic development is not as clear to many as the tie between
adequate business financing and economic development, the
relationship is still very strong and important. All areas of the state
-- rural and urban -- face public works problems, but rural
Oklahoma does face some problems peculiar to it, e.g., lack of
public works planning expertise.
The most recent assessment of public works conditions in
Oklahoma is out-of-date. The only current data relates to highway
and bridge conditions and needs, with the latest data on other
public works needs from 1986.
Statistics by State, County and Municipal governments for
public works are available with a two-year lag from the Census
Bureau. Highway and Streets spending increased 15.2% from
1984-87; sewer by 44.6%; solid waste by 5.5%; and water
spending decreased by (.8%).
Solid waste is a very serious, upcoming problem. Costs are
rapidly increasing, and the EPA is increasing requirements on the
states and local communities.
* In Oklahoma, 30% of landfills have a useful life of
five years or less and another 25% have ten years or
less.
* Oklahoma is currently looking at options of
recycling and industrial waste minimization as ways
to minimize future cost increases.
Climate
Oklahoma Rural Business Development Strategy 1990 9
Oklahoma
Viewpoint
The lack of
comprehensive
capital
improvements
planning was
recognized as a
major gap in most
Oklahoma
communities.
Chapter I
:::::::::::::::: .
Public Works and Highways Development was recognized as a
key component in Oklahoma's Five Year Strategic Economic
Development Plan. The plan recommends four items:
* Increase local authority;
* Provide local planning and financial assistance;
* Design and implement a statewide public works
plan; and,
* Assist state agencies and local governments
through a public works research institute.
The 1.9..8..6. Oklahoma Infrastructure Study (the state's most up-to-
date, comprehensive infrastructure study) identified inadequate
capital improvements planning on both the state and local levels as
the major problem affecting Oklahoma's public works and
highways.
Lack of funding to maintain and construct local and county
roads, highways, sewers, water systems, bridges, and solid waste
systems was proposed by the conference participants as the
primary public works problem facing rural communities. The
participants recommended increasing public works funding through
a variety of means, including user fees, a state public works
revolving loan fund, and regional sharing of resources and
expertise.
The lack of comprehensive capital improvements planning was
recognized as a major gap in most Oklahoma communities.
Stressing the necessity for expertise and assistance at the local
level, state on-site technical assistance was strongly
recommended, along with a sharing of resources and expertise on
a regional basis, e.g., a public works assistance circuit rider
program. Additionally, the participants stressed the importance of
research in order to develop accurate capital improvements plans,
and recommended this research be conducted by a university-based
public works research institute.
Once again, localities know very little about existing state public
works programs. To combat this problem, the participants
recommended a better marketing program be designed for current
state programs and, as a facet of that program, more on-site
programs be conducted to explain the state resources that are
available.
10 Oklahoma Rural Business Development Strategy 1990
..::::':::: .. :::::::::::::::::::::::::::::::::::::=:::::::::::: .. ::':':':':':':':':':':':':':':':':':':':
CHAPTER II. THEMES AND
ACTIONS
A lot of good things are happening in rural Oklahoma today,
much of it because local communities had an idea and the initiative
to ''get the ball rolling." It is clear that Oklahoma's rural
communities want to decide, on their own, the direction of their
future. This strategy hopes to identify ways in which the state can
assist local communities AFTER the communities make the
decision to chart their own road map.
Four themes clearly appeared in the participants'
recommendations in each issue area:
* the need for a variety of technical assistance
and leadership development programs to be
presented on-site in the rural communities,
* the need for the state to support public/private
financing partnerships which generate the
necessary financial support and assistance for
rural businesses, lenders and communities to
successfully develop in this ever-evolving
economy,
* the need for the state to facilitate and support
local and regional cooperation and sharing of
resources, and
* the need for an efficient service delivery and
marketing system to provide and promote
existing state services to rural communities.
In addition to these themes, it was clear rural Oklahoma
communities recognize they need assistance from the state and
other entities to "help get themselves off the ground." But, the
communities plan to succeed through their own hard work and
determination.
Also, a common thread running through the participants'
recommendations was the plea for "turf battles" to stop. The
described battles ran the gamut of community vs. community,
T...........h.............e...........m~..~..•...•...~.e...~. s .
It is clear that
Oklahoma's rural
communities want
to decide, on their
own, the direction
of their future.
Oklahoma Rural Business Development Strategy 1990 11
Actions
Creation of a
rural
assistance
center at the
Oklahoma
Department of
Commerce
Chapter /I
:;:;:;:;:;:;:::::;:;:;:;:;:;:;:;:::::;:;:::::;:;:;:;:;:::::;:::::;:;:::::;::::::::.:.: :.:.:.:.:.:::::;:::;:.:;:;:::;:;:;:;:;:::;:.:;:;:::;:;:::::::;:::::::::::::::::::::::;:;:;:::;:::::;:;:::::::::::;:::;: ;:::::::::::::::::;:;:::::::: :::::::::::::::::::::;:;:;:;:;:::::::;:::::;::::::.:' :::::::::::;:::;:;:: :;:;:;:;:;:;:;:;:;:::::::::::::;::;:::::::.:.:.:.
region vs. region, and service provider vs. service provider. These rural
leaders recognized how detrimental turfism can be, and stressed the
need for cooperation between all of the players.
What is the best way to address these needs and provide the
assistance requested by our rural communities? The following rural
strategy action plan recommends specific actions to address the identified
needs and the primary parties responsible for implementing the actions.
As in the previous chapter, this section is divided by the issue areas.
RURAL STRATEGY ACTION PLAN
Oklahoma's existing rural development system is comprised of
numerous organizations without very many direct ties or coordination.
Each organization has its own board, funding source, and programs to
administer. But, these organizations' basic purpose is the same: To help
rural Oklahoma's communities, businesses, and citizens prosper.
With this common purpose in mind, the development of a "one-stop
shop" for rural assistance programs seems to be a logical step in the
journey toward developing the most efficient service delivery and
marketing system possible. Many states have successfully developed
this type of rural assistance center in order to provide better, more
coordinated and in-depth service to their rural communities. For example,
North Carolina's Rural Economic Development Center has, among many
other efforts, developed two programs to improve skills for local leaders.
Although the Kansas Rural Assistance Center is relatively new, they have
already developed a rural assistance information and assistance line and
a rural assistance computer database to help rural communities quickly
access necessary information.
Therefore, the first and foremost recommendation of this strategy is
the creation of a rural assistance center at the Oklahoma Department of
Commerce. With the Oklahoma Rural Enterprise Team -- a statewide
organization of community and business service providers -- serving as a
steering committee, the Department should create a rural assistance
center to act as a clearinghouse for the state's public and non-profit rural
development programs. A graphic representation of the center is found in
Figure 1.
The purpose of the rural assistance center is to focus additional
attention toward existing rural assistance programs (e.g., Certified Cities,
Teamwork Oklahoma, Main Street, Cooperative Extension Service) and
not to duplicate services already in existence. The center should be
12 Oklahoma Rural Business Development Strategy 1990
Chapter /I
OKLAHOMA'S RURAL
COMMUNITIES AND BUSINESSES
Oklahoma Rural RU RAL ASSISTANCE
Enterprise Team," Center's •••.••---f CENTER
Steering Committee
Rural Assistance
Information Database
and Referral System
"800" Rural
Assistance Hotline
Regional & Local
Rural Assistance
Providers
Oklahoma Department of
Commerce, Physical
Location of Center
Mass Mailings, Press
Releases & Other
Marketing Tools
OKLAHOMA'S RURAL
COMMUNITIES AND BUSINESS
'Statewide Organization of Service Providers
Figure 1
........................................................................•.•...•.........................................................................................
Oklahoma Rural Business Development Strategy 1990 13
Chapter /I
responsible for developing an efficient service delivery and
marketing system in order to provide as much on-site and in-depth
technical assistance as possible to the rural communities of the
state.
Some of the necessary tools of this center will be a
computerized database of all existing rural assistance programs
and an 800 hotline number. Both of these will provide quick, up-to-date
information to communities and businesses. In addition,
because local points of contact are one of the keys to a superior
service delivery and marketing system, existing regional and local
rural assistance providers (e.g., Small Business Development
Centers, local chambers of commerce, rural electric cooperatives,
substate planning districts, county extension offices, regional
economic development organizations) should serve as the center's
local distribution outlets of brochures, materials, and general center
information.
For the referral program, the center's staff would develop and
use the rural assistance computer database to refer rural
businesses and communities to the appropriate service providers
in the communities/businesses' geographical area. For example, a
business might call the center to ask for help on its business plan.
The center's staff would refer the business to service providers in
the business' geographical area that could help the business with
its business plan. In other words, the center WOULD NOT provide
the business planning assistance, but WOULD provide the
:::::::::::;::::::::::::){;~;::;;~;~;~;~;~;~;}}~;}~;~;~;~;};:;:~:~:~;~;~;~;}~;~;~;;;~;~;~;~;;:;::;~;~;~:;: ;:;:::;:n;:ece ssa ry refe rral service .
The center's primary concern will be to help both its users -- the
communities and businesses who access the center's rural
assistance program information and the service providers who
receive the center's community and business referrals. In
particular, businesses and communities will receive quick and
accurate information regarding the services they need, so their
time is not wasted looking for the appropriate assistance. The
service providers will benefit from statewide marketing of their
programs and the opportunity to spend more of their time providing
direct services to the communities and businesses.
Rural businesses
and communities
will receive quick
and accurate
information
regarding the
services they need ...
While the center's staff members will support its role as a
clearinghouse, they will also need to contract and coordinate with
the appropriate Oklahoma rural development organizations to
provide much ot the research, planning, development, and
implementation services that will be needed to support the
14 Oklahoma Rural Business Development Strategy 1990
Chapter /I
necessary projects. The center will also receive substantial
support from staff in all divisions at the Oklahoma Department of
Commerce.
To support the center's role as a clearinghouse of rural
development programs and a coordinator of projects with other
Oklahoma rural development organizations, a FY 1991 budget
request of $160,000 and two FTE should be made.
Although some of the recommended actions can be
accomplished by redirecting existing staff and dollars, most require
new monies. Therefore, in FY 1991 the Oklahoma Department of
Commerce should request $1.475 million from the Oklahoma
Legislature to fund this center and the various projects that have
been recommended for expansion and/or implementation.
Additionally, the center will try to identify other funding sources.
The center should begin its work in July, 1990 upon receipt of
the necessary financial support from the Oklahoma Legislature
during the upcoming legislative session.
Based on the conference participants' recommendations, the
actions listed below should be undertaken in order to provide rural
Oklahoma with the tools it needs for successful growth and
development. The recommendations are separated by issue area.
LOCAL CAPACITY DEVELOPMENT
* To better prepare the state's leaders for the challenges
ahead of them, a statewide rural leadership
development program should be created through the
Oklahoma Cooperative Extension Service. The
Cooperative Extension Service should form an
advisory committee made up of local rural leaders and
representatives from such agencies and groups as
rural electric cooperatives, rural water districts, and
rural enterprise team members. The advisory
committee should review and provide suggestions
regarding curriculum and program direction. A FY 1991
budget request of $80,000 should be made for this
program.
* In order to provide more long-term, individualized
planning assistance to communities, the Oklahoma
Cooperative Extension Service's existing community
The center will need
to coordinate with
Oklahoma rural
development
organizations.
.., ,..,., ,.., ,.,.._ ,.,....•...........•...... ,.,., •...•....,., ,., '., ..,.,., ,.,.,.,.,.- ~..-.-.-.- •.•...... -.,.,.,.,..............•.•.... , ','.' '., ..',',' .,.,.,.,.,.,.,.,.,.,..... ...',,' .,.,.,.,.,.,., ,.,..,., ,.,..............•.. , ,..'.' ',' '., ,•.•.•........~.•...•.... , ,.~ -.- ,•...........•.. , , -............•...........•.•.......•.•.••.•• , ','
Oklahoma Rural Business Development Strategy 1990 15
To encourage more
local planning
efforts, the
Oklahoma Certified
Cities Program
should be
continued.
Chapter /I
economic development planning efforts should be
expanded. The Cooperative Extension Service should
work closely with other groups and agencies such as
small business development centers, substate planning
and development districts, utility companies, SBA
lenders and other financing sources, and rural electric
cooperatives. A FY 1991 budget request of $75,000
should be made for this program.
* To encourage more local planning efforts, the
Oklahoma Certified Cities Program, a public-private
leadership and community development process,
should be continued. The Department of
Commerce's FY 1991 budget request for this program
of $90,000 should be supported. (This funding request
is not included in the total request since it has already
been submitted to the Legislature in the Department of
Commerce's budget.)
* To assist the nine existing regional economic
development organizations fulfill their mission of
developing regional cooperation and resource sharing,
the Department of Commerce's existing FY 1991
budget request of $270,000 ($30,000 per region) to
partially fund the organizations should be supported.
(This funding request is not included in the total request
since it has already been submitted to the Legislature
in the Department of Commerce's budget.)
FINANCING FOR BUSINESS START-UP
AND EXPANSION
* To help rural small business owners prepare
themselves to meet the challenges they face daily, the
center should be supported by an additional staff
person at the Oklahoma Department of Commerce,
whose primary responsibility will be to work closely
with the rural assistance center in coordinating and
providing small business assistance programs.
Additionally, this staff person will spend much time
focusing on upgrading the quality of services provided
to make sure they meet the small business owners'
needs. The staff person should work closely with
Small Business Development Centers and the
16 Oklahoma Rural Business Development Strategy 1990
Chapter /I
:::::::::::::;:::::;:;:;:;::::;:;:::;:;:::;:;:;:;:;:;:;:;:;:::;:;:;:;:::;:::;:;:;::;::;:;:;:;:::;:;:;:;:;:;:;:;:;::;::;:;:;:;::::::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::::::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:;:;:;:::;:;:;:;:::::;:;:;:;:::::::;:::::::;::::::::::::::.:.:::::.:.:.: .
other appropriate entities when developing these
technical assistance programs. A FY 1991 budget
request of $70,000 should be made to support this
program.
* To help rural lenders better understand Oklahoma's
diversifying economy, and prepare them for the new
industries they will be servicing, the center should be
supported by an additional staff person at the
Oklahoma Department of Commerce, whose primary
responsibility will be to work closely with the rural
assistance center in coordinating and providing
technical assistance programs for rural lenders. The
staff person should work with the Community
Bankers Association, the Oklahoma Bankers
Association, and other appropriate entities when
developing these technical assistance programs.
A FY 1991 budget request of $70,000 should be made
to support this program.
* In order to fill the business financing gaps existing in
Oklahoma's rural markets, the center should be
supported by an additional staff person at the Oklahoma
Department of Commerce who would research and
develop, in cooperation with the appropriate service
providers, a series of public/private financing
partnership programs; and identify financial support for
these programs. A FY 1991 budget request of
$70,000 should be made to support this program.
* Since many Oklahomans perceive that the regulatory
banking environment and the restrictions on public
funds are too strict, the center, in cooperation with the
Oklahoma State Chamber of Commerce and Industry,
the Oklahoma Bankers Association, and the
Community Bankers Association, should review and
recommend changes to the state's regulatory
environment which will continue to protect the public's
funds, while removing any unnecessary restrictions
that stifle the flow of capital into the rural business
arena. Additionally, the center should work with the
Governor's Task Forces on the FDIC and FSLlC and
the Oklahoma Congressional Delegation to identify
Oklahoma Rural Business Development Strategy 1990 17
To address the
need for better and
more public works
planning on the
local level, the
Oklahoma
Cooperative
Extension Service
should expand its
public works
planning
assistance
programs.
Chapter /I
possible changes in the federal regulatory
environment which will increase the flow of capital into
the rural business arena.
PUBLIC WORKS AND HIGHWAYS DEVELOPMENT
* To address the need for better and more public works
planning on the local level, the Oklahoma Cooperative
Extension Service should expand its existing public
works planning assistance programs so more on-site,
in-depth public works planning assistance can be
provided to rural communities. The Cooperative
Extension Service will work closely with personnel in
the Department of Health, Department of
Transportation, substates, medical schools, and other
agencies in providing technical assistance to rural
communities. A FY 1991 budget request of $100,000
should be made to expand this program.
* In order to meet the overwhelming demand for public
works planning assistance, the substate planning
districts public works planning assistance program
should be expanded. The Department of Commerce's
existing FY 1991 budget request of $150,000 to
expand this program should be supported. (This
funding request is not included in the total request
since it has already been submitted to the Legislature
in the Department of Commerce's budget.)
* To encourage more comprehensive and long-term
planning by local communities, the center should review
and develop, in cooperation with the Oklahoma
Municipal League, substates, and appropriate entities,
public/private public works assistance
partnerships, such as a public works assistance circuit
rider program based on the current city manager circuit
rider program model. A FY 1991 budget request of
$200,000 should be made to support this program.
* The center should support a joint OU-OSU research and
extension program to collect and provide better public
works research data from state and local sources, and
to conduct in-depth studies on public works issues
affecting Oklahoma's communities. As the coordinating
agency, the Oklahoma Department of Commerce should
18 Oklahoma Rural Business Development Strategy 1990
Chapter"
work closely with the two major research universities to fulfill
this need. Also, one additional FTE at the Department of
Commerce should be dedicated to this area. A FY 1991
budget request of $350,000 should be made to support the
efforts of the joint OU-OSU research and extension
program. (This funding request is for this action and the
next two.)
* The center should require that the OU-OSU research
program identify and develop public/private partnership
programs and/or regulatory changes which address public
works financing gaps in Oklahoma's rural markets. This
research team would work with state agencies involved
with public works to identify and measure public works
needs. Some of these team members include the Water
Resources Board, Department of Health, Department of
Transportation Farmers Home Administration, and
Economic Development Administration.
* While federal and state government contributions make up a
substantial part of the current public works financing
structure, the center should work with the university
personnel to research and identify ways to increase
communities' ability to finance their local or regional public
works needs.
* To have a more coordinated and comprehensive public
works planning system across the state, the center should
coordinate a statewide capital improvements planning
process. This effort should also be coordinated with the
joint OU-OSU research team. An additional FTE at the
Department of Commerce should be dedicated to this area.
A FY 1991 budget request of $300,000 should be made to
support this effort.
Support a joint
OU-OSU research
and extension
program to collect
and provide better
public works
research data.
Oklahoma Rural Business Development Strategy 1990 19
The decisions and
needs of rural
Oklahoma
communities and
their citizens must
be this strategy's
guiding force.
.:.:.:.:.:.:.:.:.:.:.:.:.:-:.:.:.:.:.:.;.:.:.;.:.:.:.:::.:.:::::.:::.:.:.:::.:::::::.:.:::::::=:::::=::::::::.:::.:::::::.:::.::::::.:::.:::::.:.:.:::::::.::::::::::::::;:;:;:;:;:;:;:::::;:;:::;::::;::;:;:;:;:::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;;:;:::;:::;:; :;:;:;:;:;:;:;:;:::::; :;:;:;:;:;:::;:; ;:;:::::::::;:::;:;:.:.:.: .•.........
CHAPTER III. WHAT'S NEXT?
Clearly, this strategy is a result of the hard work and dedication
of many rural leaders, those who attended the focus group
meetings and the conference. They told us what issues had to be
addressed now, and how to address them. This strategy belongs
to them, not the Department of Commerce, the Extension Service,
or the Conference Planning Committee.
Many organizations must be involved in strategy
implementation. The various state and non-profit rural service
providers need to help design the center and implement its
projects. The decisions and needs of rural Oklahoma communities
and their citizens, as they have identified for us, must be this
strategy's guiding force.
The strategy will soon be presented to the Governor, the
Oklahoma Legislature, Oklahoma Futures, and the Oklahoma
Congressional Delegation. Each of these has an important role to
play in the strategy's implementation. More important, though, is
the role of Oklahoma's rural communities and citizens:
THEY must envision their own future -- a future that
takes into account their dreams and hopes. THEY must
decide they want to change and what they want to
become. And, then, THEY must decide how they are
going to guide themselves toward that vision. Only
then can outsiders -- state and non-profit service
providers -- provide the appropriate assistance
needed by the communities.
Over the next months the Department of Commerce, the
Extension Service and the Conference Planning Committee will
work with the Governor and the Oklahoma Legislature to receive
adequate funding for the rural assistance center and these
necessary projects. With proper funding, the center should begin
its work in July, 1990.
20 Oklahoma Rural Business Development Strategy 1990
Chapter III
These same organizations will also work with the Oklahoma
Congressional Delegation to assist them with their on-going rural
development efforts.
As this strategy indicates, many things must be done to help
Oklahoma's rural communities turn around and face a brighter
future. This process -- rural revitalization -- will take a long time,
BUT the first vital steps have been taken. With everyone working
together, heading in the same direction, Oklahoma's rural
communities will eventually arrive at their envisioned future -- one
that encompasses their hopes for a healthy and prosperous life for
all.
This process -- rural
revitalization -- will
take a long time, BUT
the first vital steps
have been taken.
Oklahoma Rural Business Development Strategy 1990 21
ODOC emphasized
the need to work
with active rural
business
development
organizations to
plan the conference
and write an
effective strategy.
APPENDIX I. CONFERENCE
BACKGROUND
Overcoming the problems and taking advantage of the
opportunities facing Oklahoma's rural businesses is a central focus
of the Oklahoma Department of Commerce's (ODOC) business
development efforts. While searching for ways to improve the
economic health of the state's rural communities and businesses,
ODOC learned that the National Governors' Association (NGA),
through support from the W.K. Kellogg Foundation, had money to
support state rural development projects.
ODOC submitted to NGA a grant application, which proposed
that ODOC conduct a rural business development conference and
develop a rural business strategy from the conference
recommendations. NGA awarded the grant to ODOC in mid-April,
1989, and informed them that the National Cooperative Extension
Service had funds which could complement NGA's grant. The
Oklahoma Cooperative Extension Service joined ODOC in this
project, approached the National Cooperative Extension Service
for the funds, and was awarded a grant to co-sponsor the
conference with ODOC.
In its NGA grant proposal, ODOC emphasized the need to work
with active rural business development organizations to plan the
conference, and write an effective and realistic strategy. Keeping
this in mind, a thirty-one member conference planning committee
was formed. Because of their invaluable assistance, all the
conference planning committee members are listed in Figure 2.
Recognizing the importance of rural business leaders
participation in the design of the conference, four rural focus
groups were sponsored to find out what issues Oklahoma's rural
leaders would like to concentrate their attention upon 'at the
conference. These focus groups identified three issues -- Local
Capacity Development, Financing for Start-Up and Expansion, and
Public Works and Highways Development -- as the most important
currently facing rural Oklahoma.
22 OklahomaRuraJ Business Development Strategy 1990
Appendix I
::::::::::;:;:;:;:::::::::::::::.:::::::.:.:.: :::;:;:;:;:;:;:::;:; :::;:; :;:;:;:;:;:;:;: ;:;:;:;:::::;:::;:::;:;:;:;:;:;:;:;:;:::.::;:;:;:;:;:;:;::;:::::::::":": :;:;:;:;:;:;:;:;:;:;:;:;:;:::;=;:; :;:;:;:;:::::;:;:;:::::;:;:::.:.:.:.;.::.:: .:.:.:.:::::.:::.:::::.:::::::::::::::::::::;:;:::::;:::::;:;:::::::.:.:.:::.:.:.::.,
Because of the guidance provided by these rural leaders, the
planning committee was able to design a conference that met rural
Oklahoma's primary needs and concerns. Key to the conference's
success was providing a substantial amount of time for participant
discussion and recommendation drafting.
On November 2, 1989, the first Rural Business Development
Conference was successfully held in Stillwater, OK. With 174
participants from over 50 rural Oklahoma communities, the
conference was extremely successful, and rural Oklahoma was
well represented. Figure 3 graphically shows the distribution of
communities and contains a list of the communities represented at
the conference.
After compiling all of the participants' recommendations, ODOC
and the Extension Service, in cooperation with the conference
planning committee, wrote this document, the state's first rural
business development strategy. It will soon be formally presented
to the Governor, the Oklahoma Legislature, Oklahoma Futures,
and the Oklahoma Congressional Delegation for the necessary
action. (See the "What's Next" chapter for more implementation
information.)
Because of the
guidance provided by
rural leaders, the
planning committee
was able to design a
conference that met
rural Oklahoma's
primary needs and
concerns .
...................••.............•.•.......•.•.•.................... -.- -•.•.•.•.................... -.-..•.•.•.•.•.....•.................•.•..•......................•............ - -.-.-.-.-.-.- •.•............................ - - - ' - '..................•.....•.......... - -.-.-.-.-.- - - - - ' ..'.' ..•...................................•...•...........•...•.•.•.......•.•.•.•.•.•...........•.•.•.•.•.•...........•.•.•.•.. '•.••.•.•........
Oklahoma Rural Business Development Strategy 1990 23
Appendix I
;:;:::::;:::::;:::::;:::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:::::::::::-:::::::::::::::::::::::::::::::::::::::::::::.:.:.:.:.:.: .
OKLAHOMA RURAL BUSINESS DEVELOPMENT CONFERENCE
PLANNING COMMITTEE
Charles Anderson
Assistant Deputy Commissioner
Department of Agriculture
Cindy Ball
Field Representative
Congressman Mike Synar's Office
Debbie Camp
Director of Community
Development
Oklahoma State Chamber of
Commerce and Industry
Gary Dage
Administrative Assistant
Congressman Glenn English's
Office
Gerald Doeksen, Ph.D.
Extension Economist
Oklahoma Cooperative Extension
Service
Oklahoma State University
Rod Evans, Ph.D.
Director
Office of Business and Industrial
Cooperation
University of Oklahoma
J. D. Fleming
Director of Legislative Services
Oklahoma Farmers Union
Mary Frantz
Strategic Planner
Oklahoma Department of
Commerce
Leonard Harjo
Economic Development Director
Seminole Tribe
Jim Hopper
State Director
Senator David Boren's Office
Leroy Jackson
Special Assistant
Office of the Lieutenant Governor
Steve Lalli
Legislative Analyst
Oklahoma State Senate
The Honorable M. C. Leist
Oklahoma State Representative
Harley Lingerfelt
Director, Research and Planning
Division
Oklahoma Department of
Commerce
Melissa Mager
Economic Development Liaison
Office of the Governor
Ken McFall
Executive Secretary
Oklahoma Farm Bureau
Jim McKeown
Executive Manager
Community Bankers Association
Scott Meaders
Field Representative
Congressman Dave McCurdyis
Office
Mike Means
Field Representative
Senator Don Nickles' is Office
Bill Moyer
Executive Director
Oklahoma Municipal League
Grady Pennington, Ph.D.
State Director
Oklahoma Small Business
Development Centers
Southeastern State University
Marsha Perry
Director of Constituent Services
Congressman Jim Inholfe's Office
Mark Popovich
Senior Staff Associate
Council of State Policy and
Planning Agencies
24 Oklahoma Rural Business Development Strategy 1990
Jerry Reese
Assistant Director
Small Business Administration
Bill Roberts
Director, Public Relations &
Communications
Oklahoma Assn. of Rural Electric
Cooperatives
Tom Smith
President
Rural Enterprises, Inc.
Ron Stewart
Supervisor, Community Planning
Unit
Division of Community Affairs
and Development
Oklahoma Department of
Commerce
Gene Warner
State Supervisor-Marketing
Division
State Department of Vo- Tech
Education
Larkin Warner, Ph.D.
Regents Professor of Economics
Oklahoma State University
Mike Woods, Ph.D.
Associate Professor
Department of Agricultural
Economics
Oklahoma State University
Allen Wright
Field Representative
Congressman Mickey Edwards'
Office
Figure
2
:=:=:::::::::::::= ::::::::::::::: ::::::::::::::;;::::::::::;:::::::;:;:::::::::::::::::::;:::::::::::::::::;:;:::: :::::::::::::::::::::: :::::::::::;:;:;:::::::::::::::::::::::::::::::: ::::::::::::.:.:.:.::::::::::::::::::::::::::::::: :::::::::::::: :::::::::::::::::;:;;;:;:::::::::::::::.:.:.: ::::::::::::::::::::::::::.:.:.: ..... :... :.:.:.:.: •
Appendix I
•
• •
• • •
• •
• • • • • • • ••
• • •
•• • • • •
•
•
•
•
•
•
COMMUNITIES
Fort Gibson
Frederick
Garber
Grant
Grove
Guymon
Hobart
Hooker
Laverne
Lawton
Mangum
McAlester
Mulhall
Muskogee
Newcastle
Okemah
Oklahoma City
Owasso
•
RURAL BUSINESS DEVELOPMENT
CONFERENCE
•
Ada
Adair
Alva
Anadarko
Ardmore
Arnett
Beaver
Blackwell
Boise City
Burns Flat
Choctaw
Coalgate
Cushing
Davis
Drumright
Durant
Edmond
Fort Cobb
•
•
•
•
•
• •
•
•
Pawnee
Piedmont
Sapulpa
Sayre
Shawnee
Stigler
Stillwater
Stroud
Thomas
Tulsa
Vinita
Wagoner
Walters
Waynoka
Wewoka
Wilburton
Woodward
•
•
Figure
3
Oklahoma Rural Business Development Strategy 1990 25
, ,
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C 3935.8 R948b 1990 c.3
OKLAHOMA
RURAL BUSINESS
DEVELOPMENT
STRATEGY
JANUARY, 1990
Revitalizing .
URALO
KLAHOMA
ON THE COVER
Clockwise from top:
Tahlequah, Oklahoma's beautiful Sequoyah Park.
Facade restoration of The Green Apple, a women's
clothing store, in downtown Anadarko, Oklahoma.
Serving pieces of the world's largest pecan pie at the
annual Pecan Pie Festival in Okmulgee, Oklahoma.
The idle Robin Hood Flour Mill in Ponca City, Oklahoma.
New public transportation system connecting downtown
Eufaula and Marina Cove on Lake Eufaula.
(Photos courtesy of the Oklahoma Main Street Program.)
Oklahoma Rural Business Development Strategy 1990
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ..;;;;;;;;~;~;;;;;;;;;;; ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;; ;;;;;;;;;;;;;;;;;;;:;.: .;.;:;:;;; ;;;;;;;;;;~; :;:;:;;;;;:;;;;;;;:; :;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:;:;:;:;:::::::::::::; ::::::::::::::::;::::::::;;;:;:::;;::;;;:::;:::;:;:;;;;;;; :;:;:;:;:;:;:;:;:;:::;:;:;:;:::;:::;:;::::;:;::: .:.: .
OKLAHOMA RURAL BUSINESS
DEVELOPMENT STRATEGY
January 1990
Principal Authors:
Mary Frantz, Oklahoma Department of Commerce
Harley Lingerfelt, Oklahoma Department of Commerce
Gerald Doeksen, Oklahoma Cooperative Extension Service
Mike Woods, Oklahoma Cooperative Extension Service
Supporting Grants:
National Governors' Association
w.K. Kellogg Foundation
National Cooperative Extension Service
The authors extend our sincere thanks to Mark Popovich
with the Council for State Policy and Planning Agencies
for his excellent guidance and support. We gratefully
acknowledge the Rural Business Development
Conference Planning Committee for their help in planning
the conference and reviewing this strategy. Their names
are listed in Appendix I.
Revitalizing
URALO KLAHOMA
Oklahoma Rural Business Development Strategy 1990
This publication was printed by the State Department of Vocational Technical Education,
Printing Department, and distributed by the Oklahoma Department of Commerce as
authorized by Donald D. Paulsen, Secretary of Commerce. Fifteen Hundred Copies
(1,500) were printed at a cost of $4,518.17. Copies have been deposited with the
Oklahoma Department of Libraries, State Publications Clearinghouse. 1/25/90 mkf
Oklahoma Rural Business Development Strategy 1990
..:.:.:.:.:.:.::::.:.:.:.:::::::::::::: . :::::::::::::::::.::::::::: :::::::::::::::::::::::::::::::~:: :::::::::::::::::::::::::::::::::::::::::::::::::::;:::::;:::;:;:;:;:;:;:::;:::::::::::::: .:.;.:.:.:.:.:.: :.: :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:::::::::::;:;:;:;:::::: :::::::::::::::::::::::;:;:;:;:;:;:::.::
CONTENTS
Executive Summary 1
Chapter I. U.S. Climate and the Oklahoma Viewpoint 4
Chapter II. Themes and Actions 11
Chapter III. What's Next 20
Appendix I 22
Oklahoma Rural Business Development Strategy 1990
:::::::::::::::::::::::::::::::::::::::::::: . ........................... ::::::::::::::::::::::::::::.:.:::: :.:.:.:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:::.:.:.::::::::::::::::::::::::::::::::.:.: .
EXECUTIVE SUMMARY
This strategy is the work of many rural Oklahoma leaders --
those that attended regional focus groups and the Oklahoma Rural
Business Development Conference on November 2, 1989. Their
insightful comments and excellent recommendations form the base
of this report, and, if followed, will lead Oklahoma's rural
communities toward a brighter and more prosperous future.
The focus groups held this past summer pinpointed the three
issues on which the conference should direct its attention -- Local
Capacity Development, Financing for Business Start-Up and
Expansion, and Public Works and Highways Development. At the
conference, participants heard brief presentations on these three
issues, then discussed the issues in-depth and recommended
possible actions the state should follow to address the problems
rural communities and businesses face.
Four themes clearly appeared in the conference participants'
recommendations:
* the need for a variety of technical assistance and
leadership development programs to be presented
on-site in the rural communities;
* the need for the state to support public/private
financing partnerships which generate the
necessary financial support and assistance for
rural businesses, lenders and communities to
successfully develop in this ever-evolving
economy;
* the need for the state to facilitate and support local
and regional cooperation and sharing of resources;
and,
* the need for an efficient service delivery and
marketing system to provide and promote existing
state services to rural communities.
Themes
The strategy's recommended actions are highlighted below
under each issue. For a more in-depth review of these actions,
refer to Chapter II of this report.
Oklahoma Rural Business Development Strategy 1990
Action Plan
Creation of a rural
assistance center to
act as a clearinghouse
for the state's rural
development
programs
Executive Summary
A lot of good things are happening in rural Oklahoma today,
much of it because local communities had an idea and the
initiative to "get the ball rolling." It is clear that Oklahoma's rural
communities want to decide, on their own, the direction of their
future. But, they must know what services are available to help
guide them toward their goals.
To address this need, conference participants strongly
recommended more coordination and better marketing of public
and non-profit rural development programs. Therefore, the first
recommendation of this strategy is the creation of a rural
assistance center to act as a clearinghouse for the state's
public and non-profit rural development programs.
While the center's staff members will support the information
and referral program, they will also need to contract and
coordinate with the appropriate Oklahoma rural development
organizations to provide much of the research, planning,
development, and implementation services that are needed to
support the projects outlined below.
LOCAL CAPACITY
* creation of a statewide rural leadership development
program
* expansion of existing community economic
development planning efforts by the Oklahoma
Cooperative Extension Service
* continued funding for the Oklahoma Certified Cities
Program, a public-private leadership and community
development project
* partial funding of the nine regional economic
development organizations
FINANCING FOR BUSINESS
START-UP AND EXPANSION
* better coordination and provision of small business
assistance programs to Oklahoma's rural small
businesses
* better coordination and provision of technical
assistance programs to Oklahoma's rural lenders
* research and development of a series of
public/private financing partnership programs, and
identification of financial support for these programs
2 Oklahoma Rural Business Development Strategy 1990
Executive Summary
* review and development of possible changes to the
state's regulatory environment.
PUBLIC WORKS AND HIGHWAYS DEVELOPMENT
* expansion of the existing public works planning
assistance programs provided by the Oklahoma
Cooperative Extension Service
* expansion of the substate planning districts' public
works planning assistance programs
* review and development of public/private public works
assistance partnerships
* support of a joint OU-OSU research and extension
program to collect and provide better public works
research and data from state and local sources, and to
conduct in-depth studies on public works issues
affecting Oklahoma's communities
* identification and development of public/private
partnership programs and/or regulatory changes which
address public works financing gaps in Oklahoma's rural
markets
* research and identification of ways to increase
communities' ability to finance their local or regional
public works needs
* coordination of a statewide capital improvements
planning process
This strategy will soon be presented to the Governor, the
Oklahoma Legislature, Oklahoma Futures, and the Oklahoma
Congressional Delegation. Each of these has an important role to
play in the strategy's implementation. More important, though, is
the role of Oklahoma's rural communities and citizens in '
envisioning their future and striving toward it.
Over the next months the Oklahoma Department of
Commerce, the Oklahoma Cooperative Extension Service and the
Conference Planning Committee will work with the Governor and
the Oklahoma Legislature to generate adequate funding for the
rural assistance center and these needed projects. With proper
funding, the center should begin its work in July, 1990.
What's Next?
Oklahoma Rural Business Development Strategy 1990 3
"Finding long-term
solutions would
greatly help rural
Oklahomans
prepare
themselves for a
bright new future. "
"Note: Initially, this issue was
called Infrastructure
Development. The Conference
Planning Committee felt Public
Works and Highways
Development was a more
descriptive term, so the issue
was renamed.
CHAPTER I. U.S. CLIMATE
AND THE OKLAHOMA
VIEWPOINT
"Finding long-term solutions to three issues -- Local Capacity
Development, Financing for Start-Up and Expansion, and Public
Works and Highways* -- would greatly help rural Oklahomans
prepare themselves for a bright new future," said leaders from
many rural Oklahoma communities. With these leaders' help, the
Oklahoma Department of Commerce, the Oklahoma Cooperative
Extension Service, and the Conference Planning Committee
designed Oklahoma's first Rural Business Development
Conference to focus on these three issues -- those most
challenging and important to rural Oklahoma's future (for more
information on the conference background, see Appendix I).
For the sake of the conference and this strategy, "rural" has
been defined as those communities outside of the Metropolitan
Statistical Areas (MSAs); also included are those smaller
"suburban" communities within MSAs which lack an independent
economic base and sufficient local staffing to address these issues
on their own.
In order to better understand the national and state climate
revolving around these issues, issue papers prepared by
recognized experts helped set the state for the participant
discussions. Highlights of these papers follow under the "Climate"
section in each issue. This review has been included to give you,
the reader, some insight into the background of the conference,
and how the participants were prepared -- in addition to their own
background and experience -- to deal with the important issues at
hand. (Copies of the three issue papers are available on request
from the Oklahoma Department of Commerce).
The heart of the participants' recommendations are reviewed
under the "Oklahoma Viewpoint" section in each issue. The
conference participants recommended actions which the state and
in some cases the private sector, should undertake to most
effectively assist Oklahoma's rural areas to succeed in turning their
economies around. To accurately reflect the outcome of the
conference, only recommendations made by the conference
4 Oklahoma Rural Business Development Strategy 1990
Chapter I
participants are included in this section. Although some readers
may feel there are other approaches to these issues, we do not
attempt to address those here.
LOCAL CAPACITY DEVELOPMENT Climate ...: : :.:.:.:.:.:.:.:.:.;.:.: : .
Local Capacity Development, also known as "Decision-Making
Capacity" focuses on how well a local community uses the
resources that are available in the community to mold itself into the
community it wants to become.
The keys to any community's healthy growth and development
are that:
* they want to help themselves;
* they are provided individualized assistance to enable
them to help themselves; and,
* for the most part, they -- all members of the community
-- do it themselves.
Most communities need a conceptual model -- or starting point
-- in order to "get off the ground." Normally, someone from outside
the community -- an independent facilitator -- is needed by a
community to help them take their first steps in the decision making
process. With hard work, a long-term commitment to the model,
and a true understanding and acceptance that local economic
development is an ongoing, long-term effort, a community can
create for itself a future with great potential and high rewards.
While decision making capacity already exists in many
communities, it often needs nurturing and conscious support. The
local decision makers who can contribute this support possess at
least three separate qualities:
* They must understand and interpret changing external
circumstances that create local economic development
possibilities.
* They must understand the local economy and how it
might be altered.
* And finally, they must aggressively search for ideas to
translate into actions that positively influence the
evolving local economy.
Oklahoma Rural Business Development Strategy 1990 5
Chapter I
Oklahoma
:.~:i,~~e~in!:.
Conference participants felt effective leaders are currently
found in rural Oklahoma's public and private sectors, although their
quality and preparation is somewhat uneven. Through a mixture of
leadership identification and development programs and technical
assistance programs for current leaders, a more consistent, highly
effective group of leaders will be developed in every community in
the state.
The seriousness with which local Oklahoma communities are
developing strategies for growth varies greatly, sometimes
because of apathy among their leaders, but primarily because of
the lack of expertise and resources available in many communities.
This resource void inhibits development and implementation of
community plans. To address this gap, conference participants
called for more leadership development programs, technical
assistance programs for local leaders, state financing for rural
planning efforts, and regional cooperation and sharing of
resources.
Many conference participants mentioned that the existing
service delivery system was not as efficient and coordinated as it
needed to be. To solve this problem, the participants
recommended a better marketing program, a one-stop rural
assistance center that would act as a clearinghouse for all existing
and newly-developed rural development programs, consolidation
and refinement of existing programs, and more funding to provide
additional field personnel to deliver the rural services.
Participants stressed that some of Oklahoma's rural
communities suffer from low self esteem. Among the
recommendations to address this problem were the provision of
more role models/success stories, leadership development
programs, and technical assistance programs.
FINANCING FOR BUSINESS START-UP AND
EXPANSION
Climate Deregulation has altered the structure of rural capital markets,
and the impact on rural capital availability is unclear. However, in
Oklahoma research shows that there is a capital availability
problem, which increases in magnitude as the population of a
community decreases.
There is a range of public, private, and public/private
partnership options available to help solve the rural capital
6 Oklahoma Rural Business Development Strategy 1990
Chapter I
availability problem. None of these approaches will work alone. A
combination of all three must be in place in order to help a
community and its businesses gain access to needed capital.
Public initiatives are designed to increase capital availability by
providing capital directly to small businesses, either by working
through existing financial institutions to increase lending, by
providing technical assistance to businesses to improve their
capacity to receive financing, or by regulatory changes.
With direct state lending programs, the state acts as lender to
increase capital availability for rural businesses and stimulate rural
economic development. Through indirect lending programs, the
state works with other institutions to reduce the borrowers'
financing costs or to reduce the lenders' risk associated with small
business loans.
An important component of any state activity is providing
technical assistance for small businesses to enhance their capacity
to manage their enterprises and effectively compete for financing.
Private initiatives combine aspects of direct and indirect
lending, providing particular kinds of capital to eligible businesses,
e.g., seed or equity capital, while also working with financing
institutions to secure debt capital by, for example, arranging loan
guarantees. Other private initiatives have developed innovative
technical assistance programs to enhance rural capital access by
providing business and management assistance to entrepreneurs
and small business owners, e.g., Maine's Coastal Enterprises, Inc.
and Minnesota's Women's Economic Development Corporation.
Public/private partnerships work through existing private
institutions or create new institutions that can use state funds to
leverage private dollars for small business development, e.g.,
Michigan's Capital Access Program and Greater Minnesota
Corporation.
There are four important keys to designing capital programs for
rural areas:
* Providing a stable, long-term source of funding.
Private dollars can be leveraged to augment public
programs or the state can work through private
institutions.
* Targeting program funds to businesses facing the
most severe capital constraints (those businesses
unable to obtain credit through traditional avenues
An important
component of any
state activity is
providing
technical
assistance for
small business ...
Oklahoma Rural Business Development Strategy 1990 7
Oklahoma
Viewpoint
.:.:.:.:-:.:.:-:.:.:.:.:.:-:.:::.:.:;;.:
The use of public
dollars to leverage
private dollars
was strongly
encouraged by
conference
participants.
Chapter I
:::::;:;:::::;:;:::::::::::;:;::::::::::::::: .. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;:;:;:;:;:::::::;:;:;:;:;:;:;:;:::::::?;:::::::::;:::::;:::::::;:::;::::::::.:.:.:.:.:.'.: ...................................•.. ::::.:.::.;.:.:.: :::::::::::;:;:;::::::::::::::::::.:.:.: :.: .
and for which the capital represents an important
opportunity to develop or maintain a viable
enterprise).
* Addressing the apparent need for equity as well as
debt capital by working with or establishing
alternative financial institutions.
* Incorporating a technical assistance component
into any capital enhancement program so that the
business' success and its access to capital from
traditional institutions are increased.
A recurring concern among the conference participants was
the lack of understanding by some rural small businesses and rural
lenders regarding the environment in which they are working .
Technical assistance programs to help the entrepreneurs better
prepare themselves for operating a business were highly
recommended. Additionally, programs to help lenders understand
the diversifying economy and the new industries appearing across
Oklahoma's landscape were strongly suggested. Better marketing
of Oklahoma's existing state financing programs was also advised.
In some communities, conservative lending practices were
considered a problem. Again, recommendations for technical
assistance programs to help lenders succeed in the new, evolving
Oklahoma economy, and the need for more public/private financing
partnerships to help lower the risks rural lending institutions face
were stressed.
The lack of all types of capital (working, venture, long-term,
start-up) was mentioned by most conference participants. The use
of public dollars to leverage private dollars was strongly
encouraged whether it be through guaranteed loans, a matching
fund program, regional bond pools, a state-chartered rural
business development bank, or venture capital pools.
Some participants mentioned that there is not a shortage of
funds to lend in rural Oklahoma, but a shortage of qualified
borrowers and economic opportunity. To address this problem,
participants recommended increasing technical assistance to rural
borrowers so they can identify and pursue excellent business
opportunities in order to become good lending risks.
The limited lending capacity of small, rural banks was cited as a
problem affecting rural capital availability. Recommendations to
solve this problem ranged from a state-chartered rural business
development bank to regional loan pools and guaranteed loans . ........................................................................................................................................... .
8 Oklahoma Rural Business Development Strategy 1990
Chapter I
Most conference participants felt the use of current state funds
to fund businesses was too restrictive. They recommended
creating a state regulatory environment which encourages lending
to small businesses, in addition to creating tax incentives for
private investors who invest in rural businesses.
Excessive banking regulations, particularly on the federal level,
were cited by the participants for many of the problems facing rural
banks. Although the state can only affect the federal regulations
through its Congressional Delegation and the Governor's task
forces on the FDIC and FSLlC, there may be state banking
regulations that should be closely reviewed to see whether they
can be reformed.
PUBLIC WORKS AND HIGHWAYS DEVELOPMENT
Although the tie between public works and highways and
economic development is not as clear to many as the tie between
adequate business financing and economic development, the
relationship is still very strong and important. All areas of the state
-- rural and urban -- face public works problems, but rural
Oklahoma does face some problems peculiar to it, e.g., lack of
public works planning expertise.
The most recent assessment of public works conditions in
Oklahoma is out-of-date. The only current data relates to highway
and bridge conditions and needs, with the latest data on other
public works needs from 1986.
Statistics by State, County and Municipal governments for
public works are available with a two-year lag from the Census
Bureau. Highway and Streets spending increased 15.2% from
1984-87; sewer by 44.6%; solid waste by 5.5%; and water
spending decreased by (.8%).
Solid waste is a very serious, upcoming problem. Costs are
rapidly increasing, and the EPA is increasing requirements on the
states and local communities.
* In Oklahoma, 30% of landfills have a useful life of
five years or less and another 25% have ten years or
less.
* Oklahoma is currently looking at options of
recycling and industrial waste minimization as ways
to minimize future cost increases.
Climate
Oklahoma Rural Business Development Strategy 1990 9
Oklahoma
Viewpoint
The lack of
comprehensive
capital
improvements
planning was
recognized as a
major gap in most
Oklahoma
communities.
Chapter I
:::::::::::::::: .
Public Works and Highways Development was recognized as a
key component in Oklahoma's Five Year Strategic Economic
Development Plan. The plan recommends four items:
* Increase local authority;
* Provide local planning and financial assistance;
* Design and implement a statewide public works
plan; and,
* Assist state agencies and local governments
through a public works research institute.
The 1.9..8..6. Oklahoma Infrastructure Study (the state's most up-to-
date, comprehensive infrastructure study) identified inadequate
capital improvements planning on both the state and local levels as
the major problem affecting Oklahoma's public works and
highways.
Lack of funding to maintain and construct local and county
roads, highways, sewers, water systems, bridges, and solid waste
systems was proposed by the conference participants as the
primary public works problem facing rural communities. The
participants recommended increasing public works funding through
a variety of means, including user fees, a state public works
revolving loan fund, and regional sharing of resources and
expertise.
The lack of comprehensive capital improvements planning was
recognized as a major gap in most Oklahoma communities.
Stressing the necessity for expertise and assistance at the local
level, state on-site technical assistance was strongly
recommended, along with a sharing of resources and expertise on
a regional basis, e.g., a public works assistance circuit rider
program. Additionally, the participants stressed the importance of
research in order to develop accurate capital improvements plans,
and recommended this research be conducted by a university-based
public works research institute.
Once again, localities know very little about existing state public
works programs. To combat this problem, the participants
recommended a better marketing program be designed for current
state programs and, as a facet of that program, more on-site
programs be conducted to explain the state resources that are
available.
10 Oklahoma Rural Business Development Strategy 1990
..::::':::: .. :::::::::::::::::::::::::::::::::::::=:::::::::::: .. ::':':':':':':':':':':':':':':':':':':':
CHAPTER II. THEMES AND
ACTIONS
A lot of good things are happening in rural Oklahoma today,
much of it because local communities had an idea and the initiative
to ''get the ball rolling." It is clear that Oklahoma's rural
communities want to decide, on their own, the direction of their
future. This strategy hopes to identify ways in which the state can
assist local communities AFTER the communities make the
decision to chart their own road map.
Four themes clearly appeared in the participants'
recommendations in each issue area:
* the need for a variety of technical assistance
and leadership development programs to be
presented on-site in the rural communities,
* the need for the state to support public/private
financing partnerships which generate the
necessary financial support and assistance for
rural businesses, lenders and communities to
successfully develop in this ever-evolving
economy,
* the need for the state to facilitate and support
local and regional cooperation and sharing of
resources, and
* the need for an efficient service delivery and
marketing system to provide and promote
existing state services to rural communities.
In addition to these themes, it was clear rural Oklahoma
communities recognize they need assistance from the state and
other entities to "help get themselves off the ground." But, the
communities plan to succeed through their own hard work and
determination.
Also, a common thread running through the participants'
recommendations was the plea for "turf battles" to stop. The
described battles ran the gamut of community vs. community,
T...........h.............e...........m~..~..•...•...~.e...~. s .
It is clear that
Oklahoma's rural
communities want
to decide, on their
own, the direction
of their future.
Oklahoma Rural Business Development Strategy 1990 11
Actions
Creation of a
rural
assistance
center at the
Oklahoma
Department of
Commerce
Chapter /I
:;:;:;:;:;:;:::::;:;:;:;:;:;:;:;:::::;:;:::::;:;:;:;:;:::::;:::::;:;:::::;::::::::.:.: :.:.:.:.:.:::::;:::;:.:;:;:::;:;:;:;:;:::;:.:;:;:::;:;:::::::;:::::::::::::::::::::::;:;:;:::;:::::;:;:::::::::::;:::;: ;:::::::::::::::::;:;:::::::: :::::::::::::::::::::;:;:;:;:;:::::::;:::::;::::::.:' :::::::::::;:::;:;:: :;:;:;:;:;:;:;:;:;:::::::::::::;::;:::::::.:.:.:.
region vs. region, and service provider vs. service provider. These rural
leaders recognized how detrimental turfism can be, and stressed the
need for cooperation between all of the players.
What is the best way to address these needs and provide the
assistance requested by our rural communities? The following rural
strategy action plan recommends specific actions to address the identified
needs and the primary parties responsible for implementing the actions.
As in the previous chapter, this section is divided by the issue areas.
RURAL STRATEGY ACTION PLAN
Oklahoma's existing rural development system is comprised of
numerous organizations without very many direct ties or coordination.
Each organization has its own board, funding source, and programs to
administer. But, these organizations' basic purpose is the same: To help
rural Oklahoma's communities, businesses, and citizens prosper.
With this common purpose in mind, the development of a "one-stop
shop" for rural assistance programs seems to be a logical step in the
journey toward developing the most efficient service delivery and
marketing system possible. Many states have successfully developed
this type of rural assistance center in order to provide better, more
coordinated and in-depth service to their rural communities. For example,
North Carolina's Rural Economic Development Center has, among many
other efforts, developed two programs to improve skills for local leaders.
Although the Kansas Rural Assistance Center is relatively new, they have
already developed a rural assistance information and assistance line and
a rural assistance computer database to help rural communities quickly
access necessary information.
Therefore, the first and foremost recommendation of this strategy is
the creation of a rural assistance center at the Oklahoma Department of
Commerce. With the Oklahoma Rural Enterprise Team -- a statewide
organization of community and business service providers -- serving as a
steering committee, the Department should create a rural assistance
center to act as a clearinghouse for the state's public and non-profit rural
development programs. A graphic representation of the center is found in
Figure 1.
The purpose of the rural assistance center is to focus additional
attention toward existing rural assistance programs (e.g., Certified Cities,
Teamwork Oklahoma, Main Street, Cooperative Extension Service) and
not to duplicate services already in existence. The center should be
12 Oklahoma Rural Business Development Strategy 1990
Chapter /I
OKLAHOMA'S RURAL
COMMUNITIES AND BUSINESSES
Oklahoma Rural RU RAL ASSISTANCE
Enterprise Team," Center's •••.••---f CENTER
Steering Committee
Rural Assistance
Information Database
and Referral System
"800" Rural
Assistance Hotline
Regional & Local
Rural Assistance
Providers
Oklahoma Department of
Commerce, Physical
Location of Center
Mass Mailings, Press
Releases & Other
Marketing Tools
OKLAHOMA'S RURAL
COMMUNITIES AND BUSINESS
'Statewide Organization of Service Providers
Figure 1
........................................................................•.•...•.........................................................................................
Oklahoma Rural Business Development Strategy 1990 13
Chapter /I
responsible for developing an efficient service delivery and
marketing system in order to provide as much on-site and in-depth
technical assistance as possible to the rural communities of the
state.
Some of the necessary tools of this center will be a
computerized database of all existing rural assistance programs
and an 800 hotline number. Both of these will provide quick, up-to-date
information to communities and businesses. In addition,
because local points of contact are one of the keys to a superior
service delivery and marketing system, existing regional and local
rural assistance providers (e.g., Small Business Development
Centers, local chambers of commerce, rural electric cooperatives,
substate planning districts, county extension offices, regional
economic development organizations) should serve as the center's
local distribution outlets of brochures, materials, and general center
information.
For the referral program, the center's staff would develop and
use the rural assistance computer database to refer rural
businesses and communities to the appropriate service providers
in the communities/businesses' geographical area. For example, a
business might call the center to ask for help on its business plan.
The center's staff would refer the business to service providers in
the business' geographical area that could help the business with
its business plan. In other words, the center WOULD NOT provide
the business planning assistance, but WOULD provide the
:::::::::::;::::::::::::){;~;::;;~;~;~;~;~;~;}}~;}~;~;~;~;};:;:~:~:~;~;~;~;}~;~;~;;;~;~;~;~;;:;::;~;~;~:;: ;:;:::;:n;:ece ssa ry refe rral service .
The center's primary concern will be to help both its users -- the
communities and businesses who access the center's rural
assistance program information and the service providers who
receive the center's community and business referrals. In
particular, businesses and communities will receive quick and
accurate information regarding the services they need, so their
time is not wasted looking for the appropriate assistance. The
service providers will benefit from statewide marketing of their
programs and the opportunity to spend more of their time providing
direct services to the communities and businesses.
Rural businesses
and communities
will receive quick
and accurate
information
regarding the
services they need ...
While the center's staff members will support its role as a
clearinghouse, they will also need to contract and coordinate with
the appropriate Oklahoma rural development organizations to
provide much ot the research, planning, development, and
implementation services that will be needed to support the
14 Oklahoma Rural Business Development Strategy 1990
Chapter /I
necessary projects. The center will also receive substantial
support from staff in all divisions at the Oklahoma Department of
Commerce.
To support the center's role as a clearinghouse of rural
development programs and a coordinator of projects with other
Oklahoma rural development organizations, a FY 1991 budget
request of $160,000 and two FTE should be made.
Although some of the recommended actions can be
accomplished by redirecting existing staff and dollars, most require
new monies. Therefore, in FY 1991 the Oklahoma Department of
Commerce should request $1.475 million from the Oklahoma
Legislature to fund this center and the various projects that have
been recommended for expansion and/or implementation.
Additionally, the center will try to identify other funding sources.
The center should begin its work in July, 1990 upon receipt of
the necessary financial support from the Oklahoma Legislature
during the upcoming legislative session.
Based on the conference participants' recommendations, the
actions listed below should be undertaken in order to provide rural
Oklahoma with the tools it needs for successful growth and
development. The recommendations are separated by issue area.
LOCAL CAPACITY DEVELOPMENT
* To better prepare the state's leaders for the challenges
ahead of them, a statewide rural leadership
development program should be created through the
Oklahoma Cooperative Extension Service. The
Cooperative Extension Service should form an
advisory committee made up of local rural leaders and
representatives from such agencies and groups as
rural electric cooperatives, rural water districts, and
rural enterprise team members. The advisory
committee should review and provide suggestions
regarding curriculum and program direction. A FY 1991
budget request of $80,000 should be made for this
program.
* In order to provide more long-term, individualized
planning assistance to communities, the Oklahoma
Cooperative Extension Service's existing community
The center will need
to coordinate with
Oklahoma rural
development
organizations.
.., ,..,., ,.., ,.,.._ ,.,....•...........•...... ,.,., •...•....,., ,., '., ..,.,., ,.,.,.,.,.- ~..-.-.-.- •.•...... -.,.,.,.,..............•.•.... , ','.' '., ..',',' .,.,.,.,.,.,.,.,.,.,..... ...',,' .,.,.,.,.,.,., ,.,..,., ,.,..............•.. , ,..'.' ',' '., ,•.•.•........~.•...•.... , ,.~ -.- ,•...........•.. , , -............•...........•.•.......•.•.••.•• , ','
Oklahoma Rural Business Development Strategy 1990 15
To encourage more
local planning
efforts, the
Oklahoma Certified
Cities Program
should be
continued.
Chapter /I
economic development planning efforts should be
expanded. The Cooperative Extension Service should
work closely with other groups and agencies such as
small business development centers, substate planning
and development districts, utility companies, SBA
lenders and other financing sources, and rural electric
cooperatives. A FY 1991 budget request of $75,000
should be made for this program.
* To encourage more local planning efforts, the
Oklahoma Certified Cities Program, a public-private
leadership and community development process,
should be continued. The Department of
Commerce's FY 1991 budget request for this program
of $90,000 should be supported. (This funding request
is not included in the total request since it has already
been submitted to the Legislature in the Department of
Commerce's budget.)
* To assist the nine existing regional economic
development organizations fulfill their mission of
developing regional cooperation and resource sharing,
the Department of Commerce's existing FY 1991
budget request of $270,000 ($30,000 per region) to
partially fund the organizations should be supported.
(This funding request is not included in the total request
since it has already been submitted to the Legislature
in the Department of Commerce's budget.)
FINANCING FOR BUSINESS START-UP
AND EXPANSION
* To help rural small business owners prepare
themselves to meet the challenges they face daily, the
center should be supported by an additional staff
person at the Oklahoma Department of Commerce,
whose primary responsibility will be to work closely
with the rural assistance center in coordinating and
providing small business assistance programs.
Additionally, this staff person will spend much time
focusing on upgrading the quality of services provided
to make sure they meet the small business owners'
needs. The staff person should work closely with
Small Business Development Centers and the
16 Oklahoma Rural Business Development Strategy 1990
Chapter /I
:::::::::::::;:::::;:;:;:;::::;:;:::;:;:::;:;:;:;:;:;:;:;:;:::;:;:;:;:::;:::;:;:;::;::;:;:;:;:::;:;:;:;:;:;:;:;:;::;::;:;:;:;::::::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::::::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:;:;:;:::;:;:;:;:::::;:;:;:;:::::::;:::::::;::::::::::::::.:.:::::.:.:.: .
other appropriate entities when developing these
technical assistance programs. A FY 1991 budget
request of $70,000 should be made to support this
program.
* To help rural lenders better understand Oklahoma's
diversifying economy, and prepare them for the new
industries they will be servicing, the center should be
supported by an additional staff person at the
Oklahoma Department of Commerce, whose primary
responsibility will be to work closely with the rural
assistance center in coordinating and providing
technical assistance programs for rural lenders. The
staff person should work with the Community
Bankers Association, the Oklahoma Bankers
Association, and other appropriate entities when
developing these technical assistance programs.
A FY 1991 budget request of $70,000 should be made
to support this program.
* In order to fill the business financing gaps existing in
Oklahoma's rural markets, the center should be
supported by an additional staff person at the Oklahoma
Department of Commerce who would research and
develop, in cooperation with the appropriate service
providers, a series of public/private financing
partnership programs; and identify financial support for
these programs. A FY 1991 budget request of
$70,000 should be made to support this program.
* Since many Oklahomans perceive that the regulatory
banking environment and the restrictions on public
funds are too strict, the center, in cooperation with the
Oklahoma State Chamber of Commerce and Industry,
the Oklahoma Bankers Association, and the
Community Bankers Association, should review and
recommend changes to the state's regulatory
environment which will continue to protect the public's
funds, while removing any unnecessary restrictions
that stifle the flow of capital into the rural business
arena. Additionally, the center should work with the
Governor's Task Forces on the FDIC and FSLlC and
the Oklahoma Congressional Delegation to identify
Oklahoma Rural Business Development Strategy 1990 17
To address the
need for better and
more public works
planning on the
local level, the
Oklahoma
Cooperative
Extension Service
should expand its
public works
planning
assistance
programs.
Chapter /I
possible changes in the federal regulatory
environment which will increase the flow of capital into
the rural business arena.
PUBLIC WORKS AND HIGHWAYS DEVELOPMENT
* To address the need for better and more public works
planning on the local level, the Oklahoma Cooperative
Extension Service should expand its existing public
works planning assistance programs so more on-site,
in-depth public works planning assistance can be
provided to rural communities. The Cooperative
Extension Service will work closely with personnel in
the Department of Health, Department of
Transportation, substates, medical schools, and other
agencies in providing technical assistance to rural
communities. A FY 1991 budget request of $100,000
should be made to expand this program.
* In order to meet the overwhelming demand for public
works planning assistance, the substate planning
districts public works planning assistance program
should be expanded. The Department of Commerce's
existing FY 1991 budget request of $150,000 to
expand this program should be supported. (This
funding request is not included in the total request
since it has already been submitted to the Legislature
in the Department of Commerce's budget.)
* To encourage more comprehensive and long-term
planning by local communities, the center should review
and develop, in cooperation with the Oklahoma
Municipal League, substates, and appropriate entities,
public/private public works assistance
partnerships, such as a public works assistance circuit
rider program based on the current city manager circuit
rider program model. A FY 1991 budget request of
$200,000 should be made to support this program.
* The center should support a joint OU-OSU research and
extension program to collect and provide better public
works research data from state and local sources, and
to conduct in-depth studies on public works issues
affecting Oklahoma's communities. As the coordinating
agency, the Oklahoma Department of Commerce should
18 Oklahoma Rural Business Development Strategy 1990
Chapter"
work closely with the two major research universities to fulfill
this need. Also, one additional FTE at the Department of
Commerce should be dedicated to this area. A FY 1991
budget request of $350,000 should be made to support the
efforts of the joint OU-OSU research and extension
program. (This funding request is for this action and the
next two.)
* The center should require that the OU-OSU research
program identify and develop public/private partnership
programs and/or regulatory changes which address public
works financing gaps in Oklahoma's rural markets. This
research team would work with state agencies involved
with public works to identify and measure public works
needs. Some of these team members include the Water
Resources Board, Department of Health, Department of
Transportation Farmers Home Administration, and
Economic Development Administration.
* While federal and state government contributions make up a
substantial part of the current public works financing
structure, the center should work with the university
personnel to research and identify ways to increase
communities' ability to finance their local or regional public
works needs.
* To have a more coordinated and comprehensive public
works planning system across the state, the center should
coordinate a statewide capital improvements planning
process. This effort should also be coordinated with the
joint OU-OSU research team. An additional FTE at the
Department of Commerce should be dedicated to this area.
A FY 1991 budget request of $300,000 should be made to
support this effort.
Support a joint
OU-OSU research
and extension
program to collect
and provide better
public works
research data.
Oklahoma Rural Business Development Strategy 1990 19
The decisions and
needs of rural
Oklahoma
communities and
their citizens must
be this strategy's
guiding force.
.:.:.:.:.:.:.:.:.:.:.:.:.:-:.:.:.:.:.:.;.:.:.;.:.:.:.:::.:.:::::.:::.:.:.:::.:::::::.:.:::::::=:::::=::::::::.:::.:::::::.:::.::::::.:::.:::::.:.:.:::::::.::::::::::::::;:;:;:;:;:;:;:::::;:;:::;::::;::;:;:;:;:::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:;;:;:::;:::;:; :;:;:;:;:;:;:;:;:::::; :;:;:;:;:;:::;:; ;:;:::::::::;:::;:;:.:.:.: .•.........
CHAPTER III. WHAT'S NEXT?
Clearly, this strategy is a result of the hard work and dedication
of many rural leaders, those who attended the focus group
meetings and the conference. They told us what issues had to be
addressed now, and how to address them. This strategy belongs
to them, not the Department of Commerce, the Extension Service,
or the Conference Planning Committee.
Many organizations must be involved in strategy
implementation. The various state and non-profit rural service
providers need to help design the center and implement its
projects. The decisions and needs of rural Oklahoma communities
and their citizens, as they have identified for us, must be this
strategy's guiding force.
The strategy will soon be presented to the Governor, the
Oklahoma Legislature, Oklahoma Futures, and the Oklahoma
Congressional Delegation. Each of these has an important role to
play in the strategy's implementation. More important, though, is
the role of Oklahoma's rural communities and citizens:
THEY must envision their own future -- a future that
takes into account their dreams and hopes. THEY must
decide they want to change and what they want to
become. And, then, THEY must decide how they are
going to guide themselves toward that vision. Only
then can outsiders -- state and non-profit service
providers -- provide the appropriate assistance
needed by the communities.
Over the next months the Department of Commerce, the
Extension Service and the Conference Planning Committee will
work with the Governor and the Oklahoma Legislature to receive
adequate funding for the rural assistance center and these
necessary projects. With proper funding, the center should begin
its work in July, 1990.
20 Oklahoma Rural Business Development Strategy 1990
Chapter III
These same organizations will also work with the Oklahoma
Congressional Delegation to assist them with their on-going rural
development efforts.
As this strategy indicates, many things must be done to help
Oklahoma's rural communities turn around and face a brighter
future. This process -- rural revitalization -- will take a long time,
BUT the first vital steps have been taken. With everyone working
together, heading in the same direction, Oklahoma's rural
communities will eventually arrive at their envisioned future -- one
that encompasses their hopes for a healthy and prosperous life for
all.
This process -- rural
revitalization -- will
take a long time, BUT
the first vital steps
have been taken.
Oklahoma Rural Business Development Strategy 1990 21
ODOC emphasized
the need to work
with active rural
business
development
organizations to
plan the conference
and write an
effective strategy.
APPENDIX I. CONFERENCE
BACKGROUND
Overcoming the problems and taking advantage of the
opportunities facing Oklahoma's rural businesses is a central focus
of the Oklahoma Department of Commerce's (ODOC) business
development efforts. While searching for ways to improve the
economic health of the state's rural communities and businesses,
ODOC learned that the National Governors' Association (NGA),
through support from the W.K. Kellogg Foundation, had money to
support state rural development projects.
ODOC submitted to NGA a grant application, which proposed
that ODOC conduct a rural business development conference and
develop a rural business strategy from the conference
recommendations. NGA awarded the grant to ODOC in mid-April,
1989, and informed them that the National Cooperative Extension
Service had funds which could complement NGA's grant. The
Oklahoma Cooperative Extension Service joined ODOC in this
project, approached the National Cooperative Extension Service
for the funds, and was awarded a grant to co-sponsor the
conference with ODOC.
In its NGA grant proposal, ODOC emphasized the need to work
with active rural business development organizations to plan the
conference, and write an effective and realistic strategy. Keeping
this in mind, a thirty-one member conference planning committee
was formed. Because of their invaluable assistance, all the
conference planning committee members are listed in Figure 2.
Recognizing the importance of rural business leaders
participation in the design of the conference, four rural focus
groups were sponsored to find out what issues Oklahoma's rural
leaders would like to concentrate their attention upon 'at the
conference. These focus groups identified three issues -- Local
Capacity Development, Financing for Start-Up and Expansion, and
Public Works and Highways Development -- as the most important
currently facing rural Oklahoma.
22 OklahomaRuraJ Business Development Strategy 1990
Appendix I
::::::::::;:;:;:;:::::::::::::::.:::::::.:.:.: :::;:;:;:;:;:;:::;:; :::;:; :;:;:;:;:;:;:;: ;:;:;:;:::::;:::;:::;:;:;:;:;:;:;:;:;:::.::;:;:;:;:;:;:;::;:::::::::":": :;:;:;:;:;:;:;:;:;:;:;:;:;:::;=;:; :;:;:;:;:::::;:;:;:::::;:;:::.:.:.:.;.::.:: .:.:.:.:::::.:::.:::::.:::::::::::::::::::::;:;:::::;:::::;:;:::::::.:.:.:::.:.:.::.,
Because of the guidance provided by these rural leaders, the
planning committee was able to design a conference that met rural
Oklahoma's primary needs and concerns. Key to the conference's
success was providing a substantial amount of time for participant
discussion and recommendation drafting.
On November 2, 1989, the first Rural Business Development
Conference was successfully held in Stillwater, OK. With 174
participants from over 50 rural Oklahoma communities, the
conference was extremely successful, and rural Oklahoma was
well represented. Figure 3 graphically shows the distribution of
communities and contains a list of the communities represented at
the conference.
After compiling all of the participants' recommendations, ODOC
and the Extension Service, in cooperation with the conference
planning committee, wrote this document, the state's first rural
business development strategy. It will soon be formally presented
to the Governor, the Oklahoma Legislature, Oklahoma Futures,
and the Oklahoma Congressional Delegation for the necessary
action. (See the "What's Next" chapter for more implementation
information.)
Because of the
guidance provided by
rural leaders, the
planning committee
was able to design a
conference that met
rural Oklahoma's
primary needs and
concerns .
...................••.............•.•.......•.•.•.................... -.- -•.•.•.•.................... -.-..•.•.•.•.•.....•.................•.•..•......................•............ - -.-.-.-.-.-.- •.•............................ - - - ' - '..................•.....•.......... - -.-.-.-.-.- - - - - ' ..'.' ..•...................................•...•...........•...•.•.•.......•.•.•.•.•.•...........•.•.•.•.•.•...........•.•.•.•.. '•.••.•.•........
Oklahoma Rural Business Development Strategy 1990 23
Appendix I
;:;:::::;:::::;:::::;:::;:;:;:;:;:;:;:;:;:;:;:;:;:;:;:::;:::::::::::-:::::::::::::::::::::::::::::::::::::::::::::.:.:.:.:.:.: .
OKLAHOMA RURAL BUSINESS DEVELOPMENT CONFERENCE
PLANNING COMMITTEE
Charles Anderson
Assistant Deputy Commissioner
Department of Agriculture
Cindy Ball
Field Representative
Congressman Mike Synar's Office
Debbie Camp
Director of Community
Development
Oklahoma State Chamber of
Commerce and Industry
Gary Dage
Administrative Assistant
Congressman Glenn English's
Office
Gerald Doeksen, Ph.D.
Extension Economist
Oklahoma Cooperative Extension
Service
Oklahoma State University
Rod Evans, Ph.D.
Director
Office of Business and Industrial
Cooperation
University of Oklahoma
J. D. Fleming
Director of Legislative Services
Oklahoma Farmers Union
Mary Frantz
Strategic Planner
Oklahoma Department of
Commerce
Leonard Harjo
Economic Development Director
Seminole Tribe
Jim Hopper
State Director
Senator David Boren's Office
Leroy Jackson
Special Assistant
Office of the Lieutenant Governor
Steve Lalli
Legislative Analyst
Oklahoma State Senate
The Honorable M. C. Leist
Oklahoma State Representative
Harley Lingerfelt
Director, Research and Planning
Division
Oklahoma Department of
Commerce
Melissa Mager
Economic Development Liaison
Office of the Governor
Ken McFall
Executive Secretary
Oklahoma Farm Bureau
Jim McKeown
Executive Manager
Community Bankers Association
Scott Meaders
Field Representative
Congressman Dave McCurdyis
Office
Mike Means
Field Representative
Senator Don Nickles' is Office
Bill Moyer
Executive Director
Oklahoma Municipal League
Grady Pennington, Ph.D.
State Director
Oklahoma Small Business
Development Centers
Southeastern State University
Marsha Perry
Director of Constituent Services
Congressman Jim Inholfe's Office
Mark Popovich
Senior Staff Associate
Council of State Policy and
Planning Agencies
24 Oklahoma Rural Business Development Strategy 1990
Jerry Reese
Assistant Director
Small Business Administration
Bill Roberts
Director, Public Relations &
Communications
Oklahoma Assn. of Rural Electric
Cooperatives
Tom Smith
President
Rural Enterprises, Inc.
Ron Stewart
Supervisor, Community Planning
Unit
Division of Community Affairs
and Development
Oklahoma Department of
Commerce
Gene Warner
State Supervisor-Marketing
Division
State Department of Vo- Tech
Education
Larkin Warner, Ph.D.
Regents Professor of Economics
Oklahoma State University
Mike Woods, Ph.D.
Associate Professor
Department of Agricultural
Economics
Oklahoma State University
Allen Wright
Field Representative
Congressman Mickey Edwards'
Office
Figure
2
:=:=:::::::::::::= ::::::::::::::: ::::::::::::::;;::::::::::;:::::::;:;:::::::::::::::::::;:::::::::::::::::;:;:::: :::::::::::::::::::::: :::::::::::;:;:;:::::::::::::::::::::::::::::::: ::::::::::::.:.:.:.::::::::::::::::::::::::::::::: :::::::::::::: :::::::::::::::::;:;;;:;:::::::::::::::.:.:.: ::::::::::::::::::::::::::.:.:.: ..... :... :.:.:.:.: •
Appendix I
•
• •
• • •
• •
• • • • • • • ••
• • •
•• • • • •
•
•
•
•
•
•
COMMUNITIES
Fort Gibson
Frederick
Garber
Grant
Grove
Guymon
Hobart
Hooker
Laverne
Lawton
Mangum
McAlester
Mulhall
Muskogee
Newcastle
Okemah
Oklahoma City
Owasso
•
RURAL BUSINESS DEVELOPMENT
CONFERENCE
•
Ada
Adair
Alva
Anadarko
Ardmore
Arnett
Beaver
Blackwell
Boise City
Burns Flat
Choctaw
Coalgate
Cushing
Davis
Drumright
Durant
Edmond
Fort Cobb
•
•
•
•
•
• •
•
•
Pawnee
Piedmont
Sapulpa
Sayre
Shawnee
Stigler
Stillwater
Stroud
Thomas
Tulsa
Vinita
Wagoner
Walters
Waynoka
Wewoka
Wilburton
Woodward
•
•
Figure
3
Oklahoma Rural Business Development Strategy 1990 25
, ,
-1